Question

In this week's Module, Chapter 2 discusses the 5 Industry Life Cycle Stages (Start-up, Rapid Growth, Mature Growth, Stabilization/maturity, and Decline). When analyzing a firm's performance, it is important to be able to determine and interpret where the given firm's financial position ranks among the 5 Life Cycle Stages.

Deliverable:
For this week's Critical Thinking assignment, identify 5 Companies or Organizations that are currently in each of the respective Life Cycle Stages. Support each choice with a short paragraph, explaining why they would be placed in the chosen category. Cite sources.

Answer 1

Industry life cycle stages consist of five stages which are:-

Introduction stage:- When any new product is introduced into the market then its comes under introductory stage. As the product is new in the market a lot of promotional activities are done in order to create awareness among the consumer so that they can purchase it. In introductory phase focus on given on 4ps which are product , price, promotion, place because if your 4ps is strong then only the potential consumers will get attracted to the products and buy them.

For example of introductory stage is electric vehicle which is being recently introduced by the some of the automobile companies and there are some products in the market. This segment develops because of the environmental factor as we all know that air is getting polluted day by day by the consumption of petrol and diesel cars so in order to control the pollution and save the environment automobile industry is shifting to electric segment. Cost of manufacturing the electric car is coming high so which cars are launched in current scenario are expensive so everybody can’t afford it, so that’s why only there are less electric vehicles we can see on roads but many companies are working on it to built such electric cars whose cost will be equal to normal cars of petrol and diesel.

Rapid growth stage:- It tells that product is selling at a higher rate and gaining the maximum market share as well and that is just because of the no competitors present in that segment or in that industry. For example:- Solar electric panels because many institutions and multinational companies are switching on this concept for electricity generation as it will help in cost cutting and will be beneficial for the organization from the future prospective. As many players or we can say suppliers are not there who can provide solar power plant services so this market is growing rapidly but soon in coming two three years this will get converted or transformed into maturity market.

Maturity Growth stage:- Industry when starts moving towards maturity stage from the growth stage then it is told as maturity growth stage. For example Smartphone industry because they are introducing new technology again and again in the cell phones and there are many competitors also so there are very less chances that anyone can enter this segment so market is become matured already but it is not stabilized because each company is trying to bring innovations and new technology in their respective phones which still attracts the consumer.

Stabilization and maturity stage:- When market become saturated and number of competitors are also in large numbers and they are not able to bring any kind of differentiation through their offerings then it is told that market is under stabilized mode. For example Aviation industry in which number of competitors are large an they are cutting cost to attract customers which result in loss for the whole industry. Each and every player in this industry is providing same kind of offering and they are just playing with cost of the ticket and nothing else.

Decline stage:- When the products is in no more need and its become outdated and not required in the current scenario because their substitute have been formed and it comes under decline stage. For example Typewriters and VCRs because laptops and computers can easily do the work which typewriters can do and VCR are not transformed into DVD players.